Pay Equity Audit Report Public Sector Workforce

Transcription

1 Pay Equity Audit Report 2011 Public Sector Workforce

2 Pay Equity Audit Report 2011 Executive Summary An audit of pay rates in the NSW public service was undertaken by Public Sector Workforce (PSW). The purpose of the audit was to investigate whether there was a gender pay gap and to identify and provide a detailed analysis of any discrepancies between the pay rates of men in the public service and women in the public service. The audit was undertaken in relation to the approximately 66,000 employees in the NSW public service, which is a subset of the NSW public sector (approx. 322,500 employees). Women comprised 54.0 per cent of NSW public service employees in 2010 compared to 53.3 per cent in The net increase in women employed in the NSW public service was 1,609 between 2007 and The corresponding net increase in men employed in the NSW public service was 522. The ratio of the increase in women to the increase in men was 3:1. All references to numbers of employees in this report are headcount numbers. The audit was project managed by PSW Industrial Relations and was overseen by a Steering Committee comprising representatives from public service agencies. An expert consultant, Mr Tim Sowerbutts, Q Social Research Consultants Pty Ltd, was engaged to analyse the data and to assist in preparing this report. The pay gap is a measure of how much women earn (on average) as a proportion of how much men earn (on average).the calculation of the pay gap for the NSW public service was based on the current salaries of employees (excluding allowances and other pay components), which were the most reliable data available to this project. To gain insights as to trends, the 2010 data were compared to 2007 data. The gender pay gap for the NSW public service in 2010 was 6.7 per cent In 2010, the average salary for women was 93.3 per cent of the average salary for men. This means that the pay gap for the NSW public service was 6.7 per cent. The pay gap was larger in 2007, at 10.4 per cent. Accordingly, the NSW public service pay gap has decreased 3.7 percentage points over the three year period 2007 to Pay Equity Audit Report 2011 Page 3

3 The pay gap for the NSW public service is significantly lower than for the NSW workforce, which the Australian Bureau of Statistics (ABS) reports as 14.8 per cent in 2007 and 15.0 per cent in Some caution is appropriate in making direct comparisons between the ABS pay gap and that of the NSW public service, as there are differences in the measures of pay used in the calculations. The reduction of the pay gap for the NSW public service between 2007 and 2010 (3.7 percentage points) is substantial in a context where the ABS results for the NSW workforce show the pay gap increased and where the national pay gap has historically been decreasing at the rate of around only one percentage point per decade. Factors contributing to the reduction in pay gap include: women are accessing part-time work at higher salary levels women are increasingly represented in more senior roles women are earning salaries more equal to those of men in the senior employment levels. Women are accessing part-time work at higher salary levels The average salaries for women working part-time increased by approximately 3 per cent more than can be accounted for by award based pay increases occurring between 2007 and This means that women are accessing part-time work at higher salary levels. The average salaries for women in part-time employment were greater than for men in part-time employment in both 2007 and in 2010, which resulted in negative pay gaps. In 2007, the average salary for women working permanent part-time was 17.1 per cent greater than for men working permanent part-time. In 2010, this difference was substantially greater; the average salary for women working permanent part-time was 29.6 per cent greater than for men working permanent part-time. This means that women are accessing part-time work at substantially higher salary levels than men in part-time employment. In 2010, the average salary for women in temporary part-time employment was 5.1 per cent greater than for men in temporary part-time employment. The proportion of women in more senior roles is increasing In 2007, 32.2 per cent of all women worked in the salary ranges above Clerk 6 (equivalent). This increased to 36.0 per cent in This means that the proportion of all women employed at middle and senior level is increasing. Three specific results follow: Women working at a salary level equivalent to Clerk 9-12 comprised 43.6 per cent of employees in that group in 2007, increasing by 3.5 percentage points to 47.1 per cent in Australian Bureau of Statistics Average Weekly Earnings Australia, cat no , table 11A Pay Equity Audit Report 2011 Page 4

4 Women working at a salary level equivalent to Senior Officer 3 comprised 27.4 per cent of employees in that group in 2007, increasing by 9.0 percentage points to 36.4 per cent in Women working at senior employment levels, including the Senior Executive Service (SES) and other senior contract employees (excluding Senior Officers), comprised 29.8 per cent of employees in that group in 2007, increasing by 4.3 percentage points to 34.1 per cent in Women at senior levels are closing the pay gap The pay gap for women working at the senior employment levels decreased significantly between 2007 and Two specific results follow: The average salary for women in the Senior Officer group was greater than for men in The pay gap for this group reduced from 2.4 per cent in 2007 to -0.5 per cent in The pay gap for women working in other senior employment levels, including the SES and other senior contract employees (excluding Senior Officers), reduced from 6.8 per cent in 2007 to 4.0 per cent in Relative to the gender pay gap data and trends of other jurisdictions, the substantial reduction in the gender pay gap of 3.7 percentage points over the relatively short time between 2007 and 2010 is a remarkable result and a strong trend toward a decreasing gender pay gap in the NSW public service. Public Sector Workforce Department of Premier and Cabinet. Pay Equity Audit Report 2011 Page 5

6 Pay Equity Audit Report Introduction An audit of pay rates in the NSW public service wasundertaken by Public Sector Workforce (PSW). 2. Purpose of the Audit The purpose of the audit was to investigate whether there was a gender pay gap and to identify and provide a detailed analysis of any discrepancies between pay rates of men in the public service and women in the public service. 3. Project Management and Scope The audit was project managed by Industrial Relations, Public Sector Workforce and was overseen by a Steering Committee of the Department of Premier and Cabinet. The Steering Committee comprised the following representatives: Public Sector Workforce (Chair) Industrial Relations Unit (Project Management and Secretariat) Workforce Information Unit, Public Sector Workforce (data provision) Policy & Strategy Unit, Public Sector Workforce NSW Industrial Relations, Department of Services, Technology and Administration NSW Treasury Office for Women s Policy, Department of Premier & Cabinet Department of Human Services Communities NSW External Expert Consultant (Mr Tim Sowerbutts, Q Social Research Consultants Pty Ltd) The Premier s announcement and the terms of reference for the project (Appendix A) specified that the audit focus on the NSW public service. The NSW public service is a subset of the NSW public sector and comprises those employees appointed/employed as officers, temporary employees and casuals under Chapter 2 of the Public Sector Employment and Management Act 2002 (PSEM Act). They are employed in the Principal Departments or 21 Other Agencies in the Public Service - see Schedule 1, Part 1 of the PSEM Act. Occupational groupings within the public service include clerical and administrative officers, managers (including those who are SES and Senior Officers), correctional officers, child protection caseworkers and Pay Equity Audit Report 2011 Page 7

7 Pay Equity Audit Report 2011 disability support workers. Occupational groupings that are excluded from the audit include police, teachers, fire fighters and nurses 2. The public service comprises approximately 66,000 employees and makes up approximately 20 per cent of employees in the public sector (approx. total 322,500). 2 A small subset of nurses do work in the NSW public service within the Department of Family and Community Services. Pay Equity Audit Report 2011 Page 8

8 Pay Equity Audit Report Methodology 4.1 Definition of Pay Gap Gender Pay Gap: the percentage gap between the average pay for men and the average pay for women for a defined period. The gender pay gap formula is: Average pay women 1- Average pay men x100 The gap can be positive or negative: If the average salary of men is more than the average salary of women, the pay gap will be a positive number. If the average salary of men is less than the average salary of women, the pay gap will be a negative number. 4.2 Data source: Workforce Profile database The data source for this project is the NSW Workforce Profile database. Details of this collection can be obtained from Data were selected from the Workforce Profile database for two annual reference periods ending June 2007 and June The selection of these two reference periods allowed the identification of trends and the strengths of those trends. 4.3 Measures of Pay After considering the various data categories available to this project, Current Salary at end of census period was chosen as the most reliable. Current Salary does not include allowances or overtime. On the data available, overtime information has been annualised and may be overstated. However, there is no evidence that this distortion applied to one gender more than to the other. The average annualised overtime amount for all men was approximately double the amount for women in 2010 ($1,877 compared to $905). 4.4 Analysis The analytic approach taken in this report was based on a series of univariate analyses, each looking at the effect of the explanatory factors. A multivariate statistical study was out of scope for this report. Pay Equity Audit Report 2011 Page 9

9 Pay Equity Audit Report Findings In 2010 the NSW public service employed 65,807 employees (headcount), 54.0 per cent (35,560) of whom were women. That represented an increase in the proportion of women compared with 2007 when it was 53.3 per cent. In this report, all references to numbers of employees will be headcount numbers, not full-timeequivalent numbers. The net increase in women employees was 1609 between 2007 and The corresponding net increase of men was 522. The ratio of the increase in women to the increase in men was 3:1. The pay gap between the average salaries of men and women decreased by 3.7 percentage points over the three year period 2007 to 2010, from 10.4 per cent to 6.7 per cent. The national pay gap has historically been decreasing at the rate of around one percentage point per decade 3. In this context, the change in the NSW public service pay gap is a significant result. This report also considers the pay gap within other categories: 5.1 Age 5.2 Employment Status 5.3 Agency 5.4 Occupation 5.5 Distribution across Salary Bands and Seniority 5.6 Aboriginal and Torres Strait Islander (ATSI) 5.7 Disability 5.8 First Language other than English The data relied upon for each section are available in the Appendices. 3 Australian Bureau of Statistics Average Weekly Earnings Australia, cat no Pay Equity Audit Report 2011 Page 10

10 Pay Equity Audit Report Age Figure 1 demonstrates that the pay gap increased with age up to the age of 64 for both 2007 and % Gender Pay Gap by Age Group 20.0% 15.0% 10.0% 5.0% 0.0% % -10.0% 15 to to to to to Figure 1 For the 65+ age group, there was a large decrease in the gender pay gap from 21.1 per cent in 2007 to 1.6 per cent in The biggest gender pay gap by age in 2010 was for the 55 to 64 age group, where it was 12.8 per cent. For the youngest age group (15-24 years), the pay gap was -6.4 per cent in 2010, which means that the average salary for young women was higher than for young men. $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $ Average Salary by Age Group 15 to to to to to M 2010 W 2010 Figure 2 Pay Equity Audit Report 2011 Page 11

11 Pay Equity Audit Report 2011 Figure 2 shows that women have a higher average salary than men up to the age of 35 and that men have a higher average salary than women thereafter. 70.0% Percentage Women by Age Group 60.0% 50.0% 40.0% 30.0% 20.0% % 0.0% 15 to to to to to Figure 3 Figure 3 shows that the number of women as a percentage of each age band generally decreases with age. In 2010, approximately 65 per cent of employees aged were women whereas approximately 44 per cent of employees aged 55 to 64 were women. 5.2 Employment status 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% -25.0% -30.0% Gender Pay Gap by Employment Status FT Permanent FT Temporary FT Contract PT Permanent PT Temporary Figure 4 Pay Equity Audit Report 2011 Page 12

12 Pay Equity Audit Report 2011 Figure 4 shows that the pay gap for all categories of employment status reduced between 2007 and 2010, except for temporary part-time employees. The number of women working in permanent part-time and temporary part-time positions increased by 14.5 percentage points in 2010 compared with The average salaries for women working part-time increased by approximately 3 per cent more than can be accounted for by award based pay increases occurring between 2007 and This means that women are accessing part-time work at higher salary levels. In 2007 and 2010, the average salaries of women in part-time employment (both permanent and temporary) were greater than for men in part-time employment, which results in negative pay gaps. In 2007, the average salary for women working permanent part-time was 17.1 per cent greater than for men working permanent part-time. In 2010, this difference was substantially greater at 29.6 per cent. In 2010, the average salary for women in temporary part-time employment was 5.1 per cent greater than for men. $225, Average Salary by Employment Status $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 M 2010 W 2010 $50,000 $25,000 $- FT Permanent FT Temporary FT Contract PT Permanent PT Temporary Figure 5 Figure 5 shows the significantly different pay outcomes for different employment status categories. The contract category includes SES staff as well as other staff on contract, which explains why the average is so much greater than the other categories. The average salaries of men in full-time employment categories (both permanent and temporary) were higher than for women in full-time employment, whereas this is reversed for all part-time employment, where the average salary of women is higher than for men. Pay Equity Audit Report 2011 Page 13

13 Pay Equity Audit Report Agency Gender Pay Gap by Agency Communities, NSW 3286 Education & Training 7751 Environment, Climate Change & Water 5796 Fire Brigades, NSW 411 Health 830 Human Services Industry & Investment 3995 Justice & Attorney General NSW Crime Commission 121 NSW Transport 434 Planning 2674 Premier & Cabinet 1080 Rural Fire / Emergency Mgt NSW 925 Services, Technology & Administration 3727 State Emergency Service 237 Treasury % -7.5% 0.0% 7.5% 15.0% 22.5% 30.0% Figure 6 Figure 6 shows the gender pay gap by agency. Only the public service employees within each agency are included in this report. In some agencies, the number of public service employees is a very small proportion of the total number of employees, for example, teaching staff employed by Education and Training are not included in the public service. Figure 6 shows that the larger agencies employing public service employees generally had the smallest pay gaps. Six of the eight agencies that each employed 3,280 public service employees or more had a pay gap in 2010 of 7.6 per cent or less. Agencies with fewer public service employees are more susceptible to internal sub-groups of employees significantly impacting upon the agency pay gap. Twelve of the sixteen agencies reported decreased pay gaps in 2010 compared with Pay Equity Audit Report 2011 Page 14

14 Pay Equity Audit Report 2011 There are substantial differences in pay gap between the agencies. In 2010, while eight of the agencies reported a pay gap of greater than 15.0 per cent, Education & Training reported a pay gap of per cent. The negative pay gap for Education and Training partly reflects a concentration of men in lower-paid occupational groups, such as handypersons and livestock workers. The detail of occupations can be seen in the Table at Appendix D, Occupation by Agency for The figure for the Crime Commission should be treated with caution as there were less than 120 employees. 5.4 Occupation 2010 Gender Pay Gap by Occupation Managers Professionals Technicians and trades workers Community and personal service workers Clerical and administrative workers Sales workers Machinery operators and drivers Labourers -2.0% 6.0% 14.0% 22.0% 30.0% 38.0% Figure 7 Figure 7 shows public service employees divided into eight main ANZSCO groups for Comparable data were not available for The gender pay gap for these groups varied between -1.4 per cent and 38.1 per cent. The highest and lowest pay gap figures are associated with the two smallest groups (machinery operators and drivers and sales workers). If these groups are excluded, the gender pay gaps range between 2.6 per cent and 10.0 per cent. The ANZSCO major groups are high level codes and do not provide much detail. There is a detailed table at Appendix D, providing ANZSCO codes by agency. Pay Equity Audit Report 2011 Page 15

16 Pay Equity Audit Report Pay Distribution 2010 Distribution of women at salary bands 21.0% Percentage of workforce 14.0% 7.0% M 2010 W % Gen. clerk. 1/2 3/4 5/6 7/8 9/10 11/12 SO1 SO2 SO3 > SO3 Salary equivalent to grade Figure 10 Figure 10 shows that 64.0 per cent of all women worked in the salary range up to Clerk 6 compared with 56.1 per cent of all men in This differential roughly equalised at the salary range for Clerk 7/8, where 14.8 per cent of all women and 13.7 per cent of all men worked. The proportion of men employed above Clerk 7/8 was 30.2 per cent, compared with 21.2 per cent of women. If considered from the perspective of the proportion of women in each salary range, there has been some strong growth areas for the representation of women. Between 2007 and 2010, the percentage of all women working in each salary range equivalent to: Senior Officer 1 increased by 0.7 percent Senior Officer 2 increased by 1.0 percent Senior Officer 3 increased by 9.0 percent (from 27.4 per cent in 2007 to 36.4 per cent in 2010) Above Senior Officer 3 increased by 4.6 percent. Pay Equity Audit Report 2011 Page 17

17 Pay Equity Audit Report 2011 Gender Pay Gap by Employment Level 6.0% 3.0% 0.0% % Salary equivalent to 0-8 Salary equivalent to 9-12 Senior Officer Salary equivalent to above 12 excl. Senior Officer Figure 11 Figure 11 shows that in 2007 there was a clear trend for the pay gap to be greater at more senior employment levels: for below 8, -0.1 per cent and for salaries above 12 (excluding only Senior Officers), 6.8 per cent. In 2010, the pay gap decreased for all employment levels compared to In 2010, women s average salary was higher than men s (a pay gap of -2.6 per cent) at employment levels at 8 and below. At the highest paid employment level, men s average salary is higher than women s (a pay gap of +4.0 per cent). Pay Equity Audit Report 2011 Page 18

18 Pay Equity Audit Report % Employment Level by Percentage Women 50.0% 40.0% 30.0% 20.0% % 0.0% Salary equivalent to 0-8 Salary equivalent to 9-12 Senior Officer Salary equivalent to above 12 excl. Senior Officer Figure 12 Figure 12 shows that as employment level increases, the representation of women within each group decreases. Senior Officers The workforce information data allowed the Senior Officer group to be identified separately from all other employment categories. Senior Officers have different conditions of employment compared to other employees paid similar and higher rates (above Clerk 12 rates), such as SES. For the Senior Officer group, the average salary of women was greater than the average salary of men (a pay gap of -0.5 per cent). In 2010, 1.7 per cent of all women were employed as Senior Officers, compared with 2.9 per cent of all men (a ratio of 1 to 1.7). For non-senior Officers paid above the Clerk 12 rate, the difference isgreater, with 1.7 per cent of all women and 3.8 per cent of all men comprising the group (a ratio of 1 to 2.24). Pay Equity Audit Report 2011 Page 19

19 Pay Equity Audit Report Aboriginal and Torres Strait Islander (ATSI) 12.0% Gender Pay Gap by ATSI Status Gender pay Gap 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% % ATSI Not ATSI No data $90, Average Salary by ATSI Status $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 M 2010 W 2010 $20,000 $10,000 $- ATSI Not ATSI No data In 2007, women identifying as Aboriginal or Torres Strait Islander had an average salary that was greater than for men identifying as Aboriginal or Torres Strait Islander with a pay gap of -2.2 per cent. The gender pay gap within this group widened in favour of women s salaries in 2010, to a gender pay gap of -4.9%. The change in pay gap is consistent with the overall trend for the public service. The average salary of Aboriginal or Torres Strait Islander women is 94.0 per cent of the average salary of all women. The average salary of Aboriginal or Torres Strait Islander men is 84.0 per cent of the average salary of all men. Pay Equity Audit Report 2011 Page 20

20 Pay Equity Audit Report 2011 In 2010, 35.0 per cent of all women and 32.5 per cent of all men did not indicate whether they identify as Aboriginal or Torres Strait Islander. 5.7 Disability 12.0% Gender Pay Gap by Disability 10.0% Gender Pay Gap 8.0% 6.0% 4.0% % 0.0% Disability No disability No data The pay gap between women who identified as having a disability and men who identified as having a disability was 8.7 per cent in 2007 and 5.9 per cent in The change in pay gap is consistent with the overall trend for the public service. The average salary of women with a disability is the same as the average salary of all women. The average salary of men with a disability is 99.5 per cent of the average salary of all men. In 2010, 36.9 per cent of all women and 35.4 per cent of all men did not indicate whether they have a disability. Pay Equity Audit Report 2011 Page 21

21 Pay Equity Audit Report First Language other than English 12.0% Gender Pay Gap by language 10.0% Gender Pay Gap 8.0% 6.0% 4.0% % 0.0% Other language English No data The pay gap between the average salary of women who identified as having a first language other than English and the average salary of men who identified as having a first language other than English was 10.7 per cent in 2007 and 9.3 per cent in The change in pay gap is consistent with the overall trend for the public service. The average salary of women with a first language other than English is 98.0 per cent of the average salary of all women in the public service. The average salary of men with a first language other than English is the same as the average salary of all men in the public service. In 2010, 36.4 per cent of all women and 34.5 per cent of all men did not indicate whether they had a first language other than English. Pay Equity Audit Report 2011 Page 22

22 Pay Equity Audit Report Comparisons with NSW generally and the ACT public service 16.0% Gender Pay Gap Comparisons 14.0% 12.0% Pay Gap 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% NSW PS 2010 NSW PS 2007 ABS NSW May 2010 ABS NSW May 2007 ACT PS June 2010 The pay gap in NSW reflects all sectors of the NSW economy, include ordinary time allowances and penalty rates, but exclude juniors (employees who are aged 20 years or below). The NSW May 2007 gender pay gap was 14.8 per cent and increased to 15.0 per cent in May The NSW public service gender pay gap results are based on Current Salary, which does not include ordinary time allowances and penalty rates, but does include juniors. The gender pay gap for the NSW public service was 10.4 per cent in 2007 and reduced to 6.7 per cent in Some caution is appropriate in making direct comparisons between the ABS pay gap and that of the NSW public service, as there are differences in the measures of pay used in the calculations and the population. If juniors are excluded from the NSW public service result so as to improve the comparability of NSW public service results to ABS results, the 2010 pay gap would be 6.8 per cent, as shown in the above graph. [Note that the other graphs in this report rely on a 6.7 per cent pay gap for 2010.] The only other relevant and recent public sector gender pay gap result is the ACT public service result, which was 3.3 per cent for The ACT methodology is similar to that applied in this report in that salary is used, excluding allowances and penalty rates. Pay Equity Audit Report 2011 Page 23

24 Background facts NSW Public Service 60 per cent of all employees are women; 32 per cent of Senior Executives and Chief Executives are women; and 37 per cent of Board positions are occupied by women a 20 per cent increase since Top 200 Australian Stock Exchange companies: 2 per cent of CEOs are women; 10.7 per cent of Executive Managers are women; and 49 per cent had at least one woman on their board. State Parliament 28.9 per cent of NSW parliamentarians are women; and 30.4 per cent of the NSW Cabinet are women. NSW is roughly on par with the Australian average, where 30.8% of the Federal and State and Territory Parliamentarians are women. Pay Equity In 2009 for full time workers before overtime and bonuses, women earned 17.5 per cent less than men. In total pay packets, the gap between men and women doubled with women earning 35 per cent less than men. Women s superannuation balances are only 51.4 per cent of their male counterparts and as a result of this gap, women are more likely than men to experience financial hardship and poverty. Education Women s achievements in the 2009 NSW Higher School Certificate included: 55 per cent of students on the Distinguished Achievers list 66 per cent of First in Course awards 55 per cent of high achieving All-Rounders 2008 Department of Education, Employment and Workplace Relations Higher Education Statistics show: 59% of graduates were women.

25 NSW Public Service Pay Equity Audit Steering Committee Terms of Reference Preamble The Premier advised that an audit would be conducted of pay rates of the NSW Public Service to identify and provide a detailed analysis of any discrepancies between pay rates of men and women public service employees. The pay equity audit will investigate whether there is a gender pay gap. This Steering Committee is established to oversee the analysis and review the findings of the audit that will be undertaken, in collaboration with an expert consultant. Roles and Responsibilities Approve the methodology that will be used to determine whether there is a gender pay gap; Oversee and, where necessary, direct the activities of the audit; Liaison with stakeholders; Identify barriers that might prevent timelines being met; Oversee and advise on the draft Final Report that will provide a detailed analysis of the data including significant results, trends and divergence from averages; Consider and may recommend whether any further areas for investigation are required once the results of the audit are established. Provide a Report to the Premier by 11 February Meetings Meetings will be held every month, with additional meetings as required. Reporting The Steering Committee will report to the Director-General, Department Premier & Cabinet and the Premier on the progress of the audit including presentation of the Final Report. Chair and Secretariat The Steering Committee will be chaired by the Public Sector Workforce (PSW). Secretariat support will be provided by the PSW Industrial Relations Unit. Confidentiality and conflict of interest All members must protect and maintain the confidentiality of information until such time as this information is officially released for public distribution. Membership Public Sector Workforce (Chair) Industrial Relations Unit, Public Sector Workforce (Secretariat) Workforce Information Unit, Public Sector Workforce Policy & Strategy Unit, Public Sector Workforce NSW Industrial Relations NSW Treasury Office for Women s Policy, Department of Premier & Cabinet Department of Human Services Communities NSW External Expert Consultant

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